Trump Calls Affordability Crisis a 'Hoax', but Over 50% of Americans Say They're Struggling With Grocery and Gas Prices

US President Donald Trump has dismissed the US affordability crisis as a 'hoax' created by Democrats, but new polling suggests voters are still feeling the squeeze from higher living costs, with over 50% of Americans struggling to afford petrol and groceries.

The disconnect is becoming increasingly difficult for the White House to ignore as Republicans head towards the 2026 midterm elections.

Trump made the comments during the Republican Party's first-ever midterm convention in Dallas, where he attacked Democrats for focusing on affordability and argued that prices were coming down under his administration.

'The affordability crisis is fake,' Trump had said, according to reporting on his speech. He even blamed former President Joe Biden for inflation and argued that food prices and other goods were 'rapidly going down'. However, Americans appear considerably less convinced.

57% Say the Economy Is Getting Worse

An exclusive Harris Poll conducted for The Guardian found that 57% of Americans believe the economy is getting worse, up from 46% in February.

About half of Democrats, Republicans, and independents said they were having difficulty affording everyday necessities, including food and petrol. Specifically, 52% reported difficulty affording petrol, and 51% said they were struggling with grocery costs.

Lastly, the survey of 4,100 US adults conducted between 28th May and 6th June, found that 95% of Americans believe the US is experiencing an affordability crisis.

That makes affordability a potentially powerful issue heading into the midterms, particularly because economic pessimism is no longer confined to Trump's political opponents.

Among Republicans, 49% said in February that the economy was improving. In the latest survey, that figure had fallen to 27%, while the share saying the economy was worsening rose to 38%.

Grocery and Petrol Prices Remain Elevated

Official inflation data also complicate the White House's argument that prices are simply falling.

According to the US Bureau of Labor Statistics, consumer prices increased 3.4% over the 12 months to July 2026. Food prices rose 3.0%, while food consumed at home increased 2.7%.

Energy prices were considerably higher, rising 14.7% year-on-year, while gasoline prices were up 24.6%.

Today, diesel prices reached a record $6 per gallon. The surge is particularly significant for the affordability debate because diesel powers much of the trucking, farming, construction, and freight network, meaning higher fuel costs can eventually feed into grocery and other consumer prices.

Oil prices have also surged back above the psychologically important $100 level. Brent crude briefly approached $110 per barrel before retreating to around $104, while US West Texas Intermediate climbed above $100 before falling back to roughly $99.

Both benchmarks remain on course for gains of more than 8% this week as renewed US-Iran tensions and disruptions around key shipping routes raise fears of tighter global oil supplies.

Trump's $5,000 Dividend Adds Another Twist

Trump's affordability message also collided with another major announcement at the Dallas convention.

He promised a $5,000 'Trump dividend' for every adult US citizen if Republicans retain control of both chambers of Congress in November.

The proposal could cost roughly $1.35 trillion if it were paid to around 270 million US adults, according to Reuters' estimate. Trump suggested tariffs could provide the funding, but current tariff revenues are nowhere near enough to cover the proposed payment.

The White House and Trump allies have portrayed the payment as an economic dividend rather than a campaign inducement. However, economists and lawmakers have reportedly questioned whether such a large cash transfer could worsen inflation and increase federal borrowing, creating an awkward contradiction for Trump's economic message.

On one hand, the president says Democrats invented the affordability crisis and that prices are falling. On the other hand, Trump's administration continues to promote measures aimed at reducing household costs, while he proposed a potentially trillion-dollar cash payment to Americans.